ArcelorMittal posts USD 22mn profit in July-Sept

ArcelorMittal today reported a net income of USD 22 million for the July-September quarter of this year on the back of higher sales and better price.
The world's largest steel maker had reported USD 193 million loss in the July-September quarter of last year, it said in a statement.
Sales for the reporting quarter were higher at USD 20.06 billion as compared to USD 19.6 billion a year ago mainly due to improved steel sales and higher marketable iron ore sales.
Total steel shipments for the quarter were 21.5 million tonnes, higher by 3.9 per cent over 20.7 million tonnes reported in the same quarter last year.

"This quarter's results show considerable improvement in our steel business which has more than offset the fall in the iron ore price. Europe has delivered another strong quarter, reflecting improved market conditions and the benefits of the optimisation efforts, the turnaround in ACIS is evident, and the NAFTA business has recovered after a disappointing first half," said Lakshmi N. Mittal, ArcelorMittal Chairman and CEO.
"Based on today's market conditions, I do not foresee a deterioration in our performance in the fourth quarter. As a result we are well placed to achieve full year EBITDA in excess of USD seven billion," he added.

Net debt of the company, as of September-end, stood at USD 17.8 billion as compared to USD 17.4 billion as of June 30, 2014.

The company said this is due largely to working capital investment of USD 0.6 billion and dividends of USD 0.4 billion which was partially offset by forex effects USD 0.5 billion.
ArcelorMittal said operating conditions remain generally favourable. The impact of declining iron ore price on mining segment profitability was offset by improvement in the steel business.
Net interest expense is now expected to be approximately USD 1.5 billion for 2014 and capital expenditure approximately at USD 3.8 billion for the whole year.

"The company maintains its medium term net debt target of USD 15 billion," it said.